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International Journal of Innovative Research in Science, Engineering and TechnologyVol . 2, Issue 5, May 2013

Copyright to IJIRSET www.ijirset.com 1629

EVALUATION OF OEE IN A

CONTINUOUS PROCESS INDUSTRY ON

AN INSULATION LINE IN A CABLE

MANUFACTURING UNITDisha M Nayak1, Vijaya Kumar M N2 ,G.Sreenivasulu Naidu3, Veena Shankar4

Student, II Year M.Tech (MEM), Department of Industrial Engineering and Management, RVCE, Visvesvaraya

Technological University, Bangalore, Karnataka, India1

Assistant Professor, Department of Industrial Engineering and Management, RVCE, Visvesvaraya Technological

University, Bangalore, Karnataka, India2

Assistant Manager, Manufacturing Engineer and Lean coach, Lapp India Pvt. Ltd., Bangalore, Karnataka,

India 3

Assistant Manager, Quality assurance, Lapp India Pvt. Ltd., Bangalore, Karnataka, India 4

Abstract: The exploration for improving productivity in the current global competitive environment has created a needfor rigorously defined performance measurement system in a manufacturing process. OEE, a vital KPI of TPM is usedto evaluate performance and productivity of the machine. OEE is one of the performance evaluation methods that aremost common and popular in the production industries. This paper tries to evaluate the OEE index on insulation unit ina cable organization and identifies the main loss elements of the process. OEE data on machine performance is aninitial key point to understand the equipment losses and establish improvement to eliminate them. The results are

compared with world class level. Result of the research demonstrates that although the OEE coefficient of theinvestigated process is not meeting the world class level, however with the continuous improvement, performance ofthe machine can be acceptable.

Keywords: Performance measurement, Overall Equipment Effectiveness, Key Performance Indicator, Insulation unit,cable organization

I. INTRODUCTIONGlobalization has expanded manufacturing organization with competition characterized by both technology push andmarket pull has forced the manufacturing companies to achieve world class performance through continuousimprovement in their products and process. Today various innovative techniques and management practices such asTPM, TQM, and business process reengineering (BPR), ERP and JIT etc. are becoming popular among the businesshouses. TPM is maintenance program which involves a newly defined concept for maintaining plants and equipment. It

is a philosophy designed to integrate equipment maintenance into the manufacturing process. The goal of any TPM isto eliminate losses tied to equipment maintenance or, in other words, keep equipment producing only good product, asfast as possible with no unplanned downtime [3].TPM is used to drive waste out of the manufacturing process by reducing or eliminating production time lost tomachine failures. The goal of any TPM is to ensure that machinery and equipment is always available to manufacture

products for the end customer by minimizing rework, slow running equipment and down time, maximum value isadded at the minimum cost.Successful TPM is an effort where the entire organization works together to maintain and improve the equipment. Asan initial initiative it is critical to measure even a small change. OEE is a metric originally developed to measure thesuccess of TPM by associating the six big losses with three measurable: Availability, Performance, and Quality. OEEenables organization to benchmark and monitor their progress with simple, easy to understand metrics. OEE provides

both a gauge for the success of TPM and a frame work to identify areas that can be improved.LAPP INDIA is a 100% subsidiary of the LAPP GROUP manufactures Cables, Connectors, Cable Glands, Conduits

and Accessories. They are the pioneers in introducing the concept of Total solutions in Electrical Connectivity inIndia, with their unbeatable range of products. Lapp India started operations at Bangalore in 1996, with amanufacturing unit and today they are the third largest manufacturing facility of the Lapp Group. Each year about100,000 km of LFLEX connecting and control cables and insulated single cores are produced.
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II. OVERALL EQUIPMENT EFFECTIVENESS

The industrial application of OEE, as on today, varies from one industry to another. Though the basis of measuringeffectiveness is derived from the original OEE concept, manufacturers have customized OEE to fit their particular

industrial requirements. OEE is a way to monitor and improve the efficiency of the manufacturing process. OEE hasbecome an accepted management tool to measure and evaluate machine productivity. OEE is broken down into threemeasuring metrics of Availability, Performance and Quality. These metrics help to gauge the machine efficiency andeffectiveness and categorize these key productivity losses that occur within the manufacturing process. OEE empowersmanufacturing companies to improve their processes and in turn quality, consistency and productivity measured at the

bottom line [2].OEE is essentially the ratio of Fully Productive Time to Planned Production Time. In practice, however, OEE iscalculated as the product of its three contributing factors:OEE = Availability x Performance x Quality.OEE = A x P x Q

III.FACTORS OF OEEThree main contributig factors of OEE are:

Availibility(A) Performance(P)

Quality(Q)

Figure 1Illustration of main components of OEE

A. AVALIBILITY

The Availability portion of the equation measures the percentage of time the equipment or operation was running

compared to the available time. A comparison of the potential operating time and the time in which the system isactually making products or providing services. All planned stops and breakdowns will reduce the availability ratio,including set-up times, preventive maintenance, breakdowns and lack of operators.

Availability =Operating Time

Planned Production TimeB. PERFORMANCE

The Performance portion of the equation measures the running speed of the operation compared to its maximum

capability, often called the rated speed. A comparison of the speed/actual output with what the system could beconsistently producing in the same timeframe Loss of production due to under-utilization of the machinery. In otherwords, losses are incurred when the equipment is not run with full speed. Short, unregistered, stops may affect the

performance ratio as well.

Performance =Total Pieces Operating Time

Ideal Run Rate

C. QUALITY

The Quality portion of the equation measures the number of good parts produced compared to the total number of

parts made. A comparison of the raw materials (or occurrences) put in to the process and the number of

products/services that meet the customers specifications. The amount of the production that has to be discharged orscrapped.

Quality =Good Pieces

Total Pieces

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IV.PROBLEMDEFINITION

As per the overall analysis in all the process, Insulation process was found to have a bottle neck as the line balancingwas a big issue because insulation being the first stage and hence is input for other stages. Therefore further processes

were idle. Since OEE helps in indicating the process, performance and as well as equipment problem. OEE was used asa measurement tool to evaluate the plant productivity. Thus this metric help gauge the machine efficiency, effectivenessand categorize these key productivity losses that occur within the manufacturing process.

V. COREINSULATIONPROCESSThe main scope of core insulation machine used to insulate the copper conductor. To ensure that the insulatedconductor meets all the requirements of the specification as per the work order.The procedure is as followsRead the work order. Ensure that all required materials are available, if not inform the same to the Production sectionin-charge. Switch ON the Main Control panel and the computer behind the machine. Set temperature of each zone.Load the Work Order specified PVC and colour as in colour code. Load the Work Order specified Bunched copperwires on both the pay-off, in such a way that the finishing bunched end of one spool can be welded to the start of thenext spool. Pull the bunched copper wire from the pay-off spool through the caterpillar and then the extrusion head

through the die and nipple, and then the printing machine, the cooling trough, the accumulator, take-up caterpillar,dancer and on then the spool mounted on take-up. Ensure that the right type of PVC is used by checking with the WorkOrder and confirming with the inscription on the sacks. Select nipple and Die for a particular bunched wire. Initially setthe extruder speed at around 10 rpm; purge the PVC until a homogeneous texture of PVC and colour is obtained. Setthe voltage of spark tester on the control panel according to instructions given in the documents. Fix the selected nippleand die into the extrusion head, pull the bunched copper wires along the line unto the take-up-spool. Fasten this to thetake-up spool. Switch on the water pump. Arrange empty spools on the take-up conveyor. All the above points must bechecked again, before starting the line. Set the line tension between pay-off and Take-up caterpillar according to thegraph on the control panel. Operate Decrease / Increase buttons under the heading PULL to decrease or increase thetension of the line respectively.Switch the selector switch of the line to STARTING mode and selector switch of extruder to INDEPENDENT/SYNCHRONISED as required. Independent push button is used while purging the PVC from the extruder to obtain theright blend. Synchronised push button is used when the line is in operation and also the colour-mixing device when the

colour-mixing device is simultaneously put on. Switch ON the line by pressing START push button and extruder pushbutton. Close the molten PVC discharge port; observe the diameter and finish of extruded core. To adjust the diametersrequired increase or decrease the speed of extruder using push buttons. The pull increase or decrease is used to give

proper tension to the bunched copper wires entering the extrusion head.At the take-up unit feed empty spools on the ramp and take-up pintails. Start the machine by pressing the start buttonon the control panel under the heading Line. Check for the diameter of the core on the control panel and turn the knobto Production on Control Panel. Empty the exit ramp as the spools are being filled up. After completion of the spools

unloaded paste the label and offer to QC. Clean the machine and itssurrounding at the end of every shift and updatethe daily report, and hand over the scrap to QC.

VI.SIX BIGLOSSESINMANUFACTUINGPROCESSWITHRESPECTTOINUSLATIONLooking at machine operation, we distinguish six types of waste we refer to as losses, because they reflect losteffectiveness of the equipment. These six big losses are grouped in three major categories: downtime, speed losses, and

quality losses. The major goals of OEE are to reduce and/or eliminate the most common causes of efficiency loss in themanufacturing process [14].

Table 1Six big losses in manufacturing process w.r.t insulation processSIX BIG LOSS CATEGORY OEE LOSS CATEGORY EVENT EXAMPLES W.R.T

INSULATION PROCESS

Break downs Down Time Loss Die changing Equipment Failure

Unplanned Maintenance

Setup And Adjustments Down Time Loss Setup/changeover ofprinting wheels

Extruders shortages

Unskilled Operator Color Change Warm-up Time

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Small Stops Speed Loss Cleaning of the nozzle Color trail Temperature setting

Components Blocked

Hopper Problem Mesh Block

Reduced Speed Speed Loss Equipment Wear Slow speed in CL2 Cu Under Design Capacity

Start-up Rejects Quality Loss Scrap Rework Printing problem Diameter variations

Color VariationsProduction Rejects Quality Loss

Scrap Rework

Semi print problem oncables

No print problem Texture Change (Core

finish)

VII. CALCULATIONOFOEE

Working days in a month = 25 days No. of shifts in a month = 25 3

Shift length = 8 hours = 480mins Short break = 0 mins (machine will not stop)

Meal break = 0 mins Down time (machine + setup time) = 60 + 90

= 150 mins Total length = 60,000 mts Rejected length = 1096.77 mts

A. AVALIBILITY

Availability = Operating Time / Planned Production TimePlanned Production Time = Shift LengthBreaks

= 480 - 0= 480 min

Operating Time = Planned Production Time - Down Time

= 480150= 330 min

Availability = 330 / 480 = 0.6875*100Availability = 68.75%

B. PERFORMANCE

Performance = (Total length / Operating Time) /Ideal Run Rate= (60,000 length / 330 minutes) / 400 lengths per minute= 0.4545 or 45.45%

Performance = 45.45%

C. QUALITY

Quality = Good length / Total lengthGood length = Total length - Reject length

= 60,0001096.77= 58903.23

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Quality = 58903.2360,000= 0.9817 or 98.17%

Quality = 98.17%

D. OVERALL EQUIPMENT EFFECTIVENESSOEE = Availability x Performance x Quality= 0.6875 x 0.4545 x 0.9817= 0.3069 or 30.69%

OEE = 30.69%VIII. RESULTANDDISCUSSION

The OEE tools were used to compute the OEE for the insulation process. OEE breaks the performance of amanufacturing unit into three separate but measurable components: Availability, Performance, and Quality gives OEE

process. OEE of insulation process is 52.93%.the average OEE for the insulation process is as shown in the graph.

Figure 2 Graphical representation of OEE and its components

There are three main time losses during which are downtime loss, speed loss, quality loss. These losses are important toidentify for calculation of OEE and to evaluate effectiveness and efficiency of the machine.

IX.CONCULSIONComparison between World Class and Insulation process OEE rates:

Table 2 Comparison of World Class OEE factor And insulation process factor

OEE FACTORS WORLD CLASS ASSEMBLYPROCESS

Availability 90.0% 77.19%

Performance 95.0% 68.67%

Quality 99.9% 99.21%

OEE 85.0% 52.93%

The main aim of taking up this study in the company was to calculate the OEE which gives us an understanding aboutthe machine efficiency and in turn gives the right percentage of the machine utilization there by helping us to detect the

bottlenecks. According to performed studies on OEE factors in insulation unit, the Availability is 77.19%, Performanceis 68.67%, and Quality is 99.21%. The achieved result show distance between OEE in this process and World ClassLevel. Therefore the world class level OEE for continuous production process is 85%. The major reason for thedistance is performance factor level in this process. In order to reach to world class level, insulation process

performance level has to enhance to 95%. On the other hand current level is 68.67% lower than what is necessary toreach to world class level.Identify and measure 6 big losses of this process were other aim of the research. These losses mainly are downtimelosses, speed losses, quality losses which affect OEE. To minimize these losses and to achieve world class OEE there

should be reduction in events which are discussed in six big losses section. The main events which are responsible forlosses in insulation process are:

77.19

68.67

99.21

52.93

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Percentage

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Die changing

Setup/changeover time of printing wheels Extruder shortages Colour change

Semi skilled operators Slow speed for different class of copper Temperature settings Smoke from Herkula ink affects the health of operators

It is important to reduce these non productive events which affect efficiency of the process. They can be reduce byimplementing new techniques and tools, standardized speed for running the line, skilled labours, special purposemachinery which wont affects the environment of the shop floor etc.A. FUTURE RECOMMENDATIONS

The scope of improvement for the future course is highlighted by the recommendations which were done by a series ofbrain storming sessions and visiting the shop floor, observing the daily activities of the operators and the works.This study selected the area of OEE and conducted an appropriate study on the subject. On the basis of the theorystudied and analyzed, a set of recommendations were suggested in order to improve the OEE thereby increasing theoutput of the machine.

Table 3 Recommendation for insulation processAREA OFOPPORTUNITY

RECOMMENDATIONS BENEFITS

Core Extrusion(Insulation)

Use of the wind turbines inthe shop floor.

Line speed of the machineshould be increased.

Operators can get rid ofhealth hazards.

Increases theproductivity.

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Contemporary Research in Business, Vol. 4(2), pp. 733-743, June 2012.

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M. Lesshammar, Evaluation and Improvement of Manufacturing Performance Measurement system the role of OEE, International journalof operations and production management, vol. 19(1), pp. 55-78, 1999

[3] M. Maram, G. Manikandan, and K. Thaigarajan, overall equipment effectiveness measurement by weighted approach method, InternationalMulti Conferenence Of Engineers And Computer scientists, vol. 2, March 2012 .

[4] Anantharaman.N, Nachiappan.R.M., evaluation of overall line effectiveness (OLE) in a continuous product line manufacturing system,Journal of Manufacturing Technology Manufacturing system, vol. 17, No. 7, pp. 987-1008, 2006.

[5] Ki-Young Jeong, Don T. Phillips, Operational efficiency and effectiveness measurement, International Journal of Operations & ProductionManagement, Vol. 21 No. 11, pp. 1404-1416, 2001.

[6] Soheil Zandieh, Seyed Akbar Nilipuor Tabatabaei, Mahsa Ghandehary, Evaluation of Overall Equipment Effectiveness in a Contin uousProcess Production System o Condensate Stabilization Plant in Assalooyeh, Interdisciplinary Journal of Contemporary Research in Business,vol. 3, No.10, February 2012.

[7] Chan, F.T.S., Lau, H.C.W., Ip, R.W.L., Chan H.K., Kong.S. Implementation of Total Productive maintenance: a case study, Int ernationalJournal of Production Economic, Vol. 95, pp. 71-94.

[8] Naderinejad .M, Nilipour Tabatabaei .S.A, Comparison of OEE in Continuous Production Line of Isomax unit of Esfahan Oil RefiningCompany (EORC) with World Class Manufacturing, Interdisciplinary Journal of Contemporary Research in Business, Vol. 3 , No. 6, pp.466-482, 2011.

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Dal .B, Tugwell.P, Greatbanks.R, Overall Equipment Effectiveness as a measure of operational improvement , International Journal ofOperational and Production Management, Vol. 20, No. 12, pp. 1488-1502, 2000.[10] Muthiah. K.M.N, Huang.S.H, Overall throughput Effectiveness (OTE) Metric for factory level Performance Monitoring and Bottle neck

Detection, International Journal of Production Research, Vol. 45, No. 20, pp. 4753-4769, 2007.[11] Andre Icso, Circonix Technologies, LLC Ringwood, NJ, Overall Equipment Effectiveness Improvement A Case for Retrofits.[12] Pintelon, Liliane; KULeuven, CIB muchiri, peter; KULeuven, CIB, Performance measurement using overall equipment effectiveness (OEE):

Literature review and practical application discussion, International Journal of Production Research, Vol. 46, pp. 1-46, 2008.[13] Frost & Sullivans, Improving Plant Performance: Overall Equipment Effectiveness (OEE), White Paper, 2005.[14] Soniya Parihar, Sanjay Jain, Dr. Lokesh Bajpai, Calculation of OEE for an Assembly Process, International Journal of Research in

Mechanical Engineering and Technology, Vol. 2, issue 2, pp. 25-29, July Dec 2012.

Disha M Nayak received her B.E. degree in Industrial Engineering and Management from JSSATE Bangalore, India, in2011. She is pursuing her M. tech degree Master of Engineering and Management from R.V. Collage Engineering,Bangalore, India for year 2011-2013. Her research interests include Quality Assurance, Total Quality Management, Leanmanufacturing Technologies and Supply Chain Management.

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